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California, Florida and Pennsylvania are recognized with Silver Shovel awards for economic development and job creation excellence.

Area Development Special Presentation

Q2 / Spring 2013

CaliforniaSilver Shovel winner California has had remarkable success in growing high-wage jobs in recent years, which has propelled its economic output at a rate faster than the nation’s as a whole for the past two decades, according to a report published by the San Francisco Federal Reserve Bank. In 2011, the most recent calendar-year results available, the state’s gross domestic product was up by 2 percent, beating the national growth rate by a third. Analysts expect even greater things for the future. For example, the Anderson Forecast expects nonfarm jobs to grow by 1.4 percent this year, 2.1 percent next year, and 2.3 percent in 2015. And economists note that technological developments are likely to fuel growth well into the future in this tech-heavy state.

Analysts at the University of California Los Angeles say the future is bright. Though it’s currently slow going for the national economic expansion, they believe that once things pick up nationally, California will gain a disproportionate share of the good news. They expect exports to be a source of ongoing prosperity, noting that they’ve been growing throughout the recovery.

It should come as no surprise that IT and e-commerce are leading the way for California. One of this year’s Projects of the Year is a California standout — the $300 million Silicon Valley research and development center planned by Samsung in San Jose. Also delivering good news in California is Amazon, which announced fulfillment centers in Patterson and San Bernardino that together represent an investment of about $250 million and the creation of nearly 1,100 jobs. Analysts expect the mail-order giant to build a few more California distribution facilities in the not too distant future.

Meanwhile, San Diego — one of the nation’s largest biotech hubs — continues to achieve success. Advanced BioHealing is establishing an office and manufacturing facility in San Diego worth about $100 million and 300 jobs — the regenerative medicine company is working on living cell-based therapies.

Projects of the Year : California

Population: 37.2 Million

Company

City

N/E

Job Creation

Investment

Industry

1.

Samsung

San Jose Semiconductors

E

2,000

$300 million

Semiconductor R&D*

2.

Advanced Call Center Technologies

Sacramento

N

2,000

$25 million

Call Center

3.

Amazon

San Bernardino

N

700

$100 million

Fulfillment Center

4.

Amazon

Patterson

N

385

$150 million

Fulfillment Center

5.

Sutter Health

Roseville

N

1,000

$30 million

Administrative Service Center

6.

Castle Rock Water Co.

Dunsmuir

E

25

$1 million

Bottling Plant

7.

Advanced BioHealing

San Diego

E

300

$100 million

Regenerative Medicine

8.

Caterpillar

Kern Cty.

N

150

$25 million

Distribution Center

9.

Belcampo Meat Co.

Yreka

N

30

$4 million

Food Processing

10.

Quick Mount PA

Walnut Creek

E

65

$7.5 million

Solar Mounting Eqpt.

Florida
In Florida, growth continued through the latter part of 2012 even as it slowed on a national level. The housing market is on the rebound, and economists at the Florida Chamber of Commerce predict that 2013 will bring 170,000 new nonfarm jobs to the Sunshine State. The University of Central Florida’s latest forecasts expect the state’s GDP to accelerate dramatically — from 1.8 percent this year to 3.3 percent next year to 4.1 percent in 2015. The Florida jobless rate this spring dropped below the national average for the first time since 2008, and the University of Central Florida expects the rate to continue dropping for at least the next three years.

Among the success stories behind Florida’s recognition this year is a $274 million investment by broadcaster Univision worth 346 jobs in Doral. Corporate headquarters investments on the list include $100 million pledged by Harris Corp. in Melbourne and $83.7 million from BI-LO in Jacksonville, where the grocer moved its headquarters as part of a merger with Winn-Dixie.

Pratt & Whitney is expanding in West Palm Beach with a $63.7 million investment and 230 new jobs. “This expansion involves Pratt & Whitney’s most advanced commercial and military engines and builds upon the great work already being done here,” said United Technologies Corp. Chairman and CEO Louis Chênevert.

Projects of the Year : Florida

Population: 19 Million

Company

City

N/E

Job Creation

Investment

Industry

1.

Univision Network

Doral

N

346

$274 million

TV Broadcasting

2.

Harris Corp.

Melbourne

E

100

$100 million

Corporate Hdqtrs./Engineering

3.

BI-LO

Jacksonville

E

100

$83.7 million

Corporate Hdqtrs.

4.

Pratt & Whitney

West Palm Beach

N

230

$63.7 million

Aircraft & Parts

5.

Arthrex

Ave Maria

N

600

$50 million

Medical Devices

6.

Air Products and Chemicals

Port Manatee

N

250

$53.6 million

Chemical Process Eqpt.

7.

Digital Risk

Boca Raton, Maitland, Jacksonville

E

1,000

$3 million

Business/Office Services

8.

L-3 Aerospace Crestview

Crestview

E

340

$13.7 million

Helicopters

9.

Navy Federal Credit Union

Pensacola

E

700

$6.8 million

Business/Office Services

10.

Medtronic

Jacksonville

E

175

$14 million

Hdqtrs./Medical Devices

The signs of a strengthening economy are everywhere. There are certainly plenty of people still looking for work, but Michigan has come a long way from the days when its unemployment rate was the highest in the nation at 14.2 percent. Michigan engineers commanding six-figure salaries are finding that they can land a job in a week or less. The state’s GDP grew by 4.9 percent in 2010 and 2.3 percent in 2011, in both cases higher than the national figures. And by 2012, the professional hockey team in Detroit was selling more tickets than it had in years.

“Michigan has been experiencing its best economic performance since 2000, both on an absolute basis and when measured in comparison to the national average,” economic journalist David Sowerby wrote in Crain’s Detroit Business recently. “Encouragingly, the economic performance of Michigan over the last three years, and our prospects for continued growth in 2013, has a stronger foundation than any time in the last 15 years.”

North Carolina
Like most other states, North Carolina is pulling out of the downturn bit by bit, and is making the kind of solid gains needed to land on the Silver Shovels list. A recent report from the North Carolina Justice Center’s Budget & Tax Center found that the state’s business climate is in fine shape, with some of the region’s fastest economic growth. The fact that its jobless rate is higher than many would like to see is a reflection of its manufacturing heritage and that many companies in the manufacturing sector took big hits during the economic downturn.

Projects of the Year : North Carolina

Population: 9.7 Million

Company

City

N/E

Job Creation

Investment

Industry

1.

Aramark Healthcare

Mecklenburg Cnty.

E

80

$150 million

Life Sciences

2.

Ashley Furniture

Davie Cnty.

N

550

$80 million

Furniture

3.

AT&T

Cleveland Cnty.

N

19

$851 million

Data Center

4.

Denver Global

Lincoln Cnty.

N

450

$30.6 million

Machinery/Eqpt.

5.

Herbalife

Forsyth

N

493

$130 million

Nutritional Products

6.

Polo Ralph Lauren

Guilford

E

500

$142 million

Inventory Mgmt./R&D

7.

Sierra Nevada Brewery

Henderson Cnty.

N

95

$107.5 million

Food/Beverages

8.

MSC Industrial Direct

Mecklenburg Cnty.

N

400

$31.3 million

Headquarters

9.

Red Hat

Wake Cnty.

E

540

$109 million

ICT

10.

Sentinel NC One

Durham Cnty.

N

19

$180 million

Data Center

Pennsylvania
At the top of Pennsylvania’s Silver Shovel success list is a $350 million investment by Delta Airlines subsidiary Monroe Energy in its petroleum refining operation in Trainer. Monroe acquired the idled facility about a year ago in order to land a more affordable supply of jet fuel for Delta, and it invested heavily in infrastructure to maximize jet fuel production, which began in the fall. And the energy story in Pennsylvania is still just taking shape, as economists expect to see many positive headlines in the coming years tied to development of the Marcellus Shale.

The state’s food and beverage sector also has been enjoying growth, with a $110 million investment by Ocean Spray Cranberries in Breinigsville and a $100 million Bimbo Bakeries investment in the same community. Meanwhile, Ahold USA/ Vantage Foods chose to pump $63 million into a Cumberland County meat-processing and packaging operation that will create 850 jobs.

MethodologyArea Development's annual Gold and Silver Shovel Awards recognize states for their achievements in attracting high-value investment projects that will create a significant number of new jobs in their communities. We collected information from all 50 states about their top-10 job-creation and investment projects initiated in 2012 (only those projects that actually had monies invested, "broke ground,"" began an expansion, started new hiring, etc. were considered). Based on a combination of weighted factors - including the number of new jobs to be created in relation to the state’s population, the combined dollar amount of the investments, the number of new facilities, the diversity of industry represented - four states achieving the highest weighted overall scores are awarded Area Development's 2013 Gold Shovels in four population categories: 10+ million, 5+ to 10 million, 3+ to 5 million, and fewer than 3 million. Runners up in each of these population categories are awarded 2013 Silver Shovels.